The England Under-21 striker was linked with Arsenal, Chelsea and Aston Villa this summer after scoring 20 goals to help the south coast club win promotion to the Premier League.
However, Wilson has followed the lead of team-mates Harry Arter, Matt Ritchie and Tommy Elphick, who have committed their futures to the club in the past 12 months.
Wilson joined Eddie Howe’s side from Coventry for £3m last summer on a four-year deal and finished Bournemouth’s top scorer, playing in all but one of the club’s 46 Championship matches last season.
The 23-year-old was named Championship player on the month in October and made his international debut in England U21s’ defeat to France in November.
“I signed thinking we would get to the Premier League in the next few years and we did it in the first season,” Wilson told the club’s website.
“There’s no reason, at this moment in time, why anyone would want to leave because we are in the Premier League and have a great manager, who is young and wants to be successful.
“Playing in the Premier League is all I have ever dreamed of. You want to be on Match of the Day and play against the players you idolise. I’m more than happy here.”